Question 1

Backward integration describes the practice of gaining control over supplies by acquiring a controlling interest in one or more of a company's major suppliers .

Accepted Answer

Backward integration involves a company acquiring a controlling interest in its major suppliers in order to gain control over its supplies and improve its supply chain efficiency.

Question 2

Forward placement means locating stock closer to the manufacturing facility.

Accepted Answer

False

Question 3

The order-fulfillment process involves the activities to deliver a product or service to the customer.

Accepted Answer

The order-fulfillment process includes activities such as receiving orders, processing them, picking and packing the products or preparing the service, and delivering them to the customer.

Question 4

The finished goods of one firm may actually be the raw materials for another firm.

Accepted Answer

This is true in many industries where firms are interdependent and part of a supply chain. For example, the finished products of a textile manufacturer may be the raw materials for a clothing manufacturer.

Question 5

Forward placement is a reduction in inventory and safety stock because of the merging of variable demands from customers.

Accepted Answer

Forward placement involves moving inventory closer to the customer to reduce lead times and transportation costs, not necessarily reducing inventory or safety stock.

Question 6

In presourcing,suppliers are selected early in the concept development stage.

Accepted Answer

Presourcing is a procurement strategy where suppliers are selected early in the concept development stage, before any formal request for bids or proposals is made. This early involvement allows suppliers to collaborate with the buyer to design and develop products or services that meet the buyer's requirements while also taking advantage of the supplier's expertise and capabilities.

Question 7

Green purchasing involves identifying,assessing,and managing the flow of environmental waste and finding ways to reduce it and minimize its impact on the environment.

Accepted Answer

Green purchasing aims to reduce and manage the flow of environmental waste and minimize its impact on the environment.

Question 8

The competitive orientation to supplier relations is that the buyer and supplier are partners.

Accepted Answer

The competitive orientation to supplier relations views the relationship as adversarial, focusing on price negotiations and cost reductions, rather than partnership and collaboration.

Question 9

An electronic marketplace where buying and selling firms come together to do business is called a catalog hub.

Accepted Answer

An electronic marketplace where buying and selling firms come together to do business is called an e-marketplace or a B2B marketplace. A catalog hub is a type of e-catalog that provides a central location for suppliers to publish and manage their product offerings, which can then be accessed by buyers.

Question 10

Postponement is a tactic used by mass-customization firms to delay the customization of a product or service until the last possible moment.

Accepted Answer

Postponement is indeed a tactic used by mass-customization firms to delay the customization of a product or service until the last possible moment. This allows them to produce a standardized base product in bulk and then customize it as per the specific requirements of the customer, reducing the costs and time associated with customization.

Question 11

Make-to-stock firms tend to use the postponement tactic.

Accepted Answer

The answer of Make-to-stock firms tend to use the postponement...

Question 12

Sole sourcing is the awarding of a contract for an item or service to only one supplier.

Accepted Answer

Sole sourcing means selecting only one supplier for an item or service, and awarding them the contract, without considering any other potential suppliers.

Question 13

Value analysis is a systematic effort to reduce the cost or improve the performance of products or services.

Accepted Answer

Value analysis is a methodology that involves examining a product or service to identify the elements that have no value for customers or users. The goal is to preserve or increase the value of the product or service to customers while reducing or eliminating its cost. This is done by evaluating various features of the product or service, such as the materials, labor, design, packaging, and distribution, and comparing them to the cost of production. By doing so, businesses can optimize their products and services to reduce costs while delivering greater value to customers.

Question 14

Sole sourcing of an item is never a good tactic.

Accepted Answer

The answer of Sole sourcing of an item is never...

Question 15

The most used form of e-purchasing today is electronic data interchange.

Accepted Answer

The answer of The most used form of e-purchasing today...

Question 16

Vendor-managed inventories are an example of the forward placement tactic.

Accepted Answer

Vendor-managed inventories involve the vendor managing the inventory levels at the buyer's location, thus placing the inventory forward closer to the end customer.

Question 17

Supply-chain management is the synchronization of firm's processes and those of its suppliers to match the flow of materials,services,and information with customer demand.

Accepted Answer

This is the definition of supply-chain management, so it is true.

Question 18

Inventory is a stock of material used to satisfy customer demand or support the production of goods and services.

Accepted Answer

Inventory is defined as a stock of material that helps in satisfying customer demand or supports the production of goods and services. Thus, the statement is true.

Question 19

Work-in-process inventory is considered an input to the transformation processes of the firm.

Accepted Answer

The answer of Work-in-process inventory is considered an input to...

Question 20

Manufacturing firms typically enter into contracts with Tier 2 suppliers with the expectation that these suppliers will then incorporate the guidelines of these contracts into the agreements they in turn enter into with Tier 1 suppliers.

Accepted Answer

The answer of Manufacturing firms typically enter into contracts with...

Quiz 2: Supply Chain Management